LifeLine Foods Outlines Its Plans For Expansion
(St. Joseph News Press) Nov. 9, 2004
By: Susan Mires

LifeLine Foods is growing into its facility.

The company plans to expand its capacity for milling corn and is recruiting more investors.

"We have a large facility, so for us, it's a natural," Bill Becker, chief executive officer of LifeLine, said of the expansion.

The cooperative moved into the former Quaker Oats plant in 2001. Lifeline only utilizes a small portion of the facility to process and package corn flour.

The expansion will involve converting some of the milling equipment that Quaker used for other grains into corn processing. Lifeline is a closed cooperative, owned by the farmers who grow the corn and share in the profits.

"That means we need more members and more corn from Missouri, Kansas, Iowa and Nebraska," Mr. Becker said.

Lifeline is currently conducting an equity drive to raise money and secure grain. The co-op is selling up to 1,200 units of stock, which cost $5,000 apiece and obligate the buyer to deliver 5,000 bushels of corn per year.

Lifeline currently has 100 employees and will gradually add about 20 more with the expansion. The plant is now operative 24 hours a day, seven days a week.

Mr. Becker said it was hard to quantify the value of the expansion since existing equipment would be utilized. The equipment conversion, which will take about eight months to complete, will begin after the first of the year.

The company also expects to increase its product line. The corn is now processed into ingredients for products like taco shells, tortillas, snack chips and batter. In addition, some industrial products are marketed. The company will work more closely with its customers to produce more market-ready products, Mr. Becker said. They also hope to place Lifeline products in local grocery stores.

Farmers seem to enjoy knowing their corn goes into food products they eat every day, said Jenny Knudson, director of merchandising for Lifeline. With the expansion, the company will purchase 12 million bushels of corn per year, up from 7 million bushels this year.

"That much additional competition for the grain is a good thing for producers," Ms. Knudson said.

This morning, Lifeline is hosting an informational meeting for potential investors at 10 a.m. at its facility. Meetings also will be held Thursday, and Nov. 16 and 18.

Lifeline has about 350 owners, mostly in Kansas and Missouri. Ms. Knudson said Lifeline has expanded the number of corn hybrids that farmers can grow for the food products. This year, the co-op also has begun accepting some genetically modified varieties.

The equity drive will end Nov. 30, but may be extended if all the units are not sold, Mr. Becker said.

The state of Missouri is offering tax credits for farmers who invest. The equity drive is open to non-farmers, but they are not eligible for the tax credits. Those interested in investing can call the co-op at 279-1651.

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